Asset-manager AllianceBernstein LP and HSBC, a unit of global banking giant HSBC Holding Plc, have been checking out properties that offer hundreds of thousands of square feet, according to people with knowledge of their searches…
With HSBC’s problems, I think it will not seek premium space.
Alliance also probably won’t anchor new space.
Thanks If SLG nabs Chase, then Silverstein should assign the rights to 2 WTC to someone else. Chase is 2 WTC’s final hope.
I’m sure that Tishman is aggressively courting JPMC for the Spiral.
NY REAL ESTATE COMMERCIAL
S.L. Green Proposes to Trade Its One Vanderbilt for Two Other Towers
J.P. Morgan Chase would hand over two Midtown towers for the S.L. Green building, now being built.
By PETER GRANT
Dec. 10, 2016 7:00 a.m. ET
Landlord SL Green Realty Corp., which pulled off one of New York’s biggest office deals of 2016, is again sensing opportunity in the financial-services sector.
SL Green earlier this year proposed to J.P. Morgan Chase a complicated deal in which the bank essentially would swap its two headquarters buildings—383 Madison Ave. and 277 Park Ave.—for SL Green’s 1.75 million square-foot office tower that recently broke ground known as One Vanderbilt.
One Vanderbilt, according to people familiar with the matter. The bank has been considering the plan, but so far negotiations haven’t commenced, these people said.
SL Green has hit pay dirt with major financial services companies in the past. This year, it sold its two-building complex at 388-390 Greenwich St. to Citigroup Inc. for $2 billion. Citigroup, which had been leasing the complex, bought the building as part of efforts to consolidate and cut costs in the New York area.
Cutting a deal with J.P. Morgan poses a bigger challenge for SL Green because the bank—as the owner of its two buildings—has no need to move.
Still, J.P. Morgan made it clear it would consider the right deal two years ago when it negotiated with the city and state of a package of incentives that would enable it to move into Related Cos.’ Hudson Square development on Manhattan’s West Side. That deal collapsed partly because not enough subsidies were offered.
SL Green might soon be joined by a partner in its efforts to lure J.P. Morgan to One Vanderbilt. SL Green chief executive Marc Holliday said at an investor conference last Monday that the company was negotiating to sell a 28% stake in One Vanderbilt to a foreign investor.
Write to Peter Grant at [email protected]
Not good. SL Green is getting greedy. They already have TD Bank.
I don’t blame them. They’re competent. Silverstein is not.
So they’re trying to have Chase and TD Bank move in One Vanderbilt?
Yes, but TD only has 200k out of 1.8 msf
Might as well just build 2 WTC on spec. The tenants clearly aren’t coming
Felt that way about the entire WTC Complex. Out of share National Pride. Tenants probably would have occupied at least half of it by now.
Fascinating pitch they’re making here. Robert, any idea what their interest is in JPMC’s current buildings? Simply as a landlord? Neither of them seems particularly ready for redevelopment, maybe they’d take the opportunity to update the office space to 21st Century Class A standards?
I do think there’s some interesting possibilities with 383 Madison’s excess air rights once the re-zoning goes into effect. SL Green already owns a few other properties in the Vanderbilt corridor area, and obviously the wider Midtown East area in general. If this went through, they ought to be able to transfer rights around and consolidate them for a monster office tower if the right redevelopment site became available.
Not Robert, but I would be shocked if they redeveloped 383 Madison or 270 Park. I think both of the buildings are class A already, btw. 383 Madison was just built for Bear Stearns in 2001.
They are probably salivating at the windfall those air rights would receive under a rezoning.
Interesting! This certainly would be a coup for One Vanderbilt!!!
Silverstein needs to get creative like Related has been, and like SL Green is doing here.
I think that SLG owns several buildings near those currently occupied by JPMC.
Silverstein has no clue.
Silverstein is greedy. 2 WTC won’t see the light of day until he gets a tenant to anchor it and $$$$$$$$. It’s sad. Everything should have been rebuilt BEFORE the 10th anniversary. It’s an embarrassment to our city that this is still not a finished complex after 15 freaking years.
I wouldn’t call waiting for someone to commit to a building before building it greedy.
In the case here I would. These are not just any buildings. There is a lot of meaning behind them and if the PA and Silverstein didn’t bitch back and forth at each other for years this all would have long been completed. It’s absurd that the complex still is not finished. There is no excuse for it.
Something to monitor. Potentially they would be searching for ~ 1M sqf.
I doubt that Pfizer will anchor new space.
I wouldn’t be surprised if they go to a tower like Four Times Sq.
The best hope for this tower is JPMC or E&Y.
I really hope this gets a tenant soon. Larry teased that he had someone.
My heart hates to see the WTC complex still not completed. It’s coming up on 20 years.